By Reuters

(Reuters) - Accenture forecast quarterly revenue below estimates on Thursday, as clients remain cautious on ‌spending on large IT transformation projects amid an ‌uncertain economic environment.

Shares of the Dublin, Ireland-based company were down more ​than 3% in premarket trading.

The company has been navigating a challenging economic environment, as clients delay large digital transformation projects and prioritize cost control and short-term initiatives.

Accenture ‌expects a 1% revenue ⁠hit for fiscal 2026 from a slowdown in its federal business as agencies are ⁠reining in spending and redirecting budgets.

Analysts have said AI should support growth over the long term, but weak ​demand due ​to cautious client spending ​is unlikely to fully ‌recover before 2028.

The company expects fiscal third-quarter revenue between $18.35 billion and $19.00 billion, with the midpoint slightly below analysts' average estimate of $18.72 billion, according to data compiled by LSEG.

Accenture said its forecast reflects the company's best view ‌of the potential impact of ​the conflict in the Middle East.

The ​company's revenue rose ​8.3% to $18.04 billion for the second quarter, ‌beating estimates of $17.84 billion.

Accenture reported ​a profit of $2.93 ​per share, compared with $2.82 per share in the same quarter last year.

New bookings, a metric that ​measures future revenue ‌based on contracts, rose 6% to $22.1 billion in ​the second quarter.

(Reporting by Anhata Rooprai in ​Bengaluru; Editing by Leroy Leo)

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